Global Diesel Crisis Widens Crude Gap to $108 as Supply Falls

A global diesel supply crisis has driven the price gap between diesel and crude oil to $107.90 per barrel in New York, up from $36.12 a year earlier, according to a new analysis from the Institute for Energy Research (IER). The shortage stems from reduced Russian and Middle Eastern exports following the Iran war and refinery damage. Net diesel exports from Russia and the Gulf fell by 1.6 million barrels per day in August compared to February, with both regions previously accounting for about 45% of seaborne diesel trade. Russia's monthly exports dropped below one million tons in June, while Gulf exports averaged just 390,000 barrels daily in August, roughly a quarter of pre-war levels. US diesel inventories fell to 107.4 million barrels in mid-September, the lowest for that time of year since records began in 1982, despite increased American exports to Europe. Refineries have operated at 95% capacity or higher for 15 consecutive weeks, the longest such stretch since 1998, while global oil stocks declined by 507 million barrels between February and August.